Practice Cost Breakdown Of A T-shirt (example) (2.2) - Economics and Sustainability

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6 sample questions

Question 1.
What is the cost of cotton in the t-shirt example?
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It's the cost of the raw material.
Question 2.
How much profit does the retailer make on each t-shirt?
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Look at the retail price minus other costs.
3Question 3.
What is the total cost to produce a t-shirt without retail markup?
- $2.00
- $2.50
- $3.00
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Consider each cost component excluding the retail markup.
4Question 4.
True or False: The majority of the retail price of a t-shirt goes to workers.
- True
- False
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Think about the profit margins.
Question 5.
Critique the economic framework of fast fashion based on the t-shirt's cost breakdown. How does this impact local economies?
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Consider where competition leads local businesses.
Question 6.
If labor costs were increased by 50%, how would this affect the retail price of the t-shirt? Analyze the implications for consumers and businesses.
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Use the current labor cost as a basis for calculation.

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